Introduction

Southeast Asian Affairs | January 1, 2001 | Copyright

By most accounts, 2000 was not a good year for Laos. The economy continued to suffer from the effects of the 1997 Asian financial crisis. The Lao currency, the kip, depreciated in value, and inflation remained high. Almost no new foreign investment came into the country in 2000, and local business people suffered because of the weakened purchasing power of the population at large. Less business meant less revenue, and a shortage of funds in the central coffer forced the government to backtrack on its promise to let the provinces keep more of locally collected revenue, and to decentralize the ...

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